CommercialSino Biopharm to Acquire Remaining Stake in LaNova Medicines...

Sino Biopharm to Acquire Remaining Stake in LaNova Medicines for Up to $951 Million

-

Sino Biopharmaceutical announced on Tuesday that it will acquire the remaining 95.09% stake in LaNova Medicines for a maximum consideration of $950.92 million. The acquisition will give Sino Biopharm full ownership of the Shanghai-based company, which specializes in antibody-based cancer therapies. The transaction is expected to close within 30 business days, contingent upon the fulfillment of regulatory requirements.
Sino Biopharm previously invested approximately 142 million Chinese yuan, or $19.8 million, to secure a 4.91% stake in LaNova in November 2023. With this acquisition, LaNova will become an indirect wholly owned subsidiary of Sino Biopharm. According to a securities filing, the net payment for the acquisition is estimated at around $501 million, considering the cash balance of about $450 million held by LaNova.
Founded in 2019, LaNova focuses on developing therapeutic antibodies targeting cancer. The company drew broader attention in November 2023 when Merck & Co. entered into a licensing agreement for LaNova’s PD-1xVEGF bispecific antibody candidate, LM-299. Merck committed to an upfront payment of $588 million, with the total deal potentially reaching $3.3 billion. LM-299 is designed to block the PD-1 protein, which inhibits immune responses against tumors, while also reducing VEGF levels, a protein that can promote tumor progression.

The LM-299 transaction marked a significant event in a growing trend of PD-1xVEGF partnerships involving Chinese biotech firms. Pfizer entered a $1.25 billion upfront agreement for 3SBio’s candidate SSGJ-707, and Bristol Myers Squibb pledged $3.5 billion upfront for a PD-L1xVEGF bispecific from BioNTech. All three candidates were developed by Chinese companies.
Beyond LM-299, LaNova’s pipeline includes other clinical-stage programs. In 2023, AstraZeneca licensed a GPRC5D-targeting antibody-drug conjugate (ADC) labeled LM-305 from LaNova in a deal with a potential value of $600 million. The company is also advancing a CCR8 antibody currently in a phase 2 registrational trial in China, and a Claudin 18.2 ADC that is in phase 3 development. Sino Biopharm noted that it already holds the China rights to the CCR8 candidate as part of its earlier equity purchase.
LaNova’s research platforms also involve targeted antibodies, ADCs, T-cell engagers, and innovations in the tumor microenvironment. Other assets listed on its website include an anti-SIRPa antibody, a CTLA-4 tumor microenvironment-specific antibody, and two 4-1BB bispecific candidates aimed at NaPi2b and CEACAM5.
The acquisition follows Sino Biopharm’s separation from F-star Therapeutics, a U.K.-based antibody platform company. F-star, acquired by Sino Biopharm’s subsidiary invoX Pharma, became a private and independent entity three months ago after a lengthy acquisition process that faced regulatory scrutiny in the United States.

Sino Biopharm, one of China’s largest pharmaceutical firms, reported 2024 revenues of approximately 28.9 billion Chinese yuan, or around $4 billion, with oncology drugs comprising about 37% of that total. Commenting on the acquisition, the company stated: “The acquisition of the cancer treatment developer will enhance Sino’s competitiveness and influence in oncology innovation, while also enabling potential future international transactions by leveraging LaNova’s R&D capabilities.”

Life Sciences Voice Logo mobile
+ posts

Latest news

AstraZeneca Joins Hands With Algen in $555M Immunology Targets Deal

AstraZeneca and Algen Forge AI-Powered Partnership AstraZeneca has expanded its network of AI-driven collaborators by partnering with California-based Algen Biotechnologies...

Aerska Launches with $21 Million to Develop RNAi Medicines for Neurological Diseases

Funding and Mission Diseases affecting the brain remain among the most complex challenges in medical research. Aerska has announced the completion...

Must read

Surrounded by controversy, FDA approves Biogen’s Alzheimer’s drug Aduhelm

In the middle of the debate about the Alzheimer’s drug approval, the United States FDA has authorized Aduhelm

You might also likeRELATED
Recommended to you